Buyers race the market as Sydney’s median house price hits a record $1.75 million
Sydney’s property market continues its upward march, with the city’s median house price surging to a record-breaking $1.75 million. This milestone reflects a 6.3% increase over the past year — equating to a $2,000 gain every week.
Several key factors are fuelling this growth:
- Improved borrowing capacity thanks to three interest rate cuts in 2025
- Increased buyer confidence across both investors and owner-occupiers
- The expansion of the First Home Guarantee Scheme, now allowing buyers on any income to purchase with just a 5% deposit — no LMI required
Buyer urgency is rising. With fewer properties available for sale, many are making early offers to avoid competitive auctions. Those aiming to buy under the updated $1.5M cap have acted quickly, aware that increased demand would push prices even higher.
The south-west, Baulkham Hills & Hawkesbury, and Parramatta led house price growth, while Northern Beaches and Inner West topped the unit market.
But beneath the optimism lies risk. Lending data reveals a rise in ultra-high loan-to-value (LVR) mortgages — with 5% deposit loans now at record highs. These buyers are entering the market with minimal equity, and while they’re avoiding LMI costs, they face higher monthly repayments and long-term interest burdens.
Rodney McLoughlin notes the urgency among clients:
“We’re seeing a new wave of buyers who waited for interest rates to fall — now they’re moving quickly before prices rise further.”
The rising property prices are also encouraging investors to return, and mortgage broker activity is surging. Yet affordability remains strained. While government support and rate cuts have unlocked demand, supply remains well behind, putting more upward pressure on prices as we move into summer.
Meanwhile, Sydney’s push for increased housing density — particularly in suburbs like Eastgardens, Zetland, and Rhodes — is helping diversify housing stock. Medium-density developments such as terraces and duplexes are being fast-tracked as part of NSW’s long-term housing solution.
For now, the momentum is clear: Sydney’s market is moving. Whether you’re a buyer or seller, staying ahead of the curve is essential.
Real Estate Newsletter
This article is a curated summary of various news stories from the past week, offering insights and updates on the real estate market. 24 October 2025.
Rodney McLoughlin is a trusted real estate professional with deep insights into the Australian property market. For personalized advice and market expertise, reach out to Rodney today.
